17 Apr 2016

A question about : Transfer of Income Tax

Hi everyone

I'm pretty new to this so excuse me if I've put this in the wrong place.

I got married last year and I've heard that, starting with TY2015-16, HMRC are allowing some of your married Income Tax allowance to be transferred to your spouse.

Currently, I don't pay any tax from my income (tax code NT) and my spouse is on the standard single person's tax code. So, I was wondering:

1. Would I be able to transfer some of my IT allowance to my spouse without us becoming financially linked? (I remember Martin mentioning you don't have to be financially linked when married but I don't know how it applies with HMRC)

2. Would this mean I would have to complete a personal tax return every year just because if the tax transfer? And,

3. If so, what's the maximum amount I can transfer annually?

I look forward to the help anyone can provide.

Best answers:

  • What do you mean by financially linked?
    No final details if there's allowance transfer have been released yet but I believe it was planned that you could transfer Ј1000
  • What is the reason for your NT code?
    This transfer will only be of benefit if, at the end of the tax year, you have taxable income of less than your allowances. Then you will be able to transfer up to Ј1050 of your unused allowance to your spouse.
  • NT codes are often related to bankruptcy and concern for being financially linked has similar connotations
    I don't know how this would affect the transfer of tax allowance
    The NT code only usually lasts one year
  • Have a look at the link below
    https://www.gov.uk/marriage-allowance
  • https://www.hmrc.gov.uk/manuals/pommanual/PAYE11010.htm
    information on NT codes.
Category: 
Cutting Tax
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